The Israeli Consumer Price Index (CPI) rose 0.3% in April 2021, according to the Central Bureau of Statistics, well below analysts ’consensus of 0.6%. Since the beginning of 2021, the CPI has risen by 1.1%, and over the past 12 months, the CPI has risen by 0.8%.
Relatively low inflation in April strengthens the Bank of Israel’s belief that inflation has stabilized between 1% and 2.5% per year. According to the latest statement by the governor of the Bank of Israel, Amir Yaron, a real “jump” in inflation would be needed to change the policy. The Bank of Israel appears to have been right and the 0.6% CPI growth in March was a temporary aberration.
In April there was a significant increase in the prices of fresh fruits and vegetables by 3% and clothing and footwear (2.8%), and food (0.7%) and a significant decrease in prices in communications (1.2%).
The housing price index, which is separate from the CPI, continued to rise in the February-March period, compared to January-February, rising by 0.8%. Apartment prices have risen 4.5% in the last 12 months.
During February-March compared to January-February, apartment prices in central Israel increased by 1.2%, in the north by 1.1%, in the south by 1%, in Tel Aviv 0.6%, in Haifa 0.2%, while prices fell in Jerusalem 0.3%.
In the last 12 months, prices have risen by 6.6% in the south, 5.7% in the north, 5.3% in central Israel, 3.7% in Tel Aviv, 3.2% in Haifa and 0.8% in Jerusalem.
Posted by Globes, business news in Israel – en.globes.co.il – May 14, 2021
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